No Jurisdictional Error Found in GST Order: Madras HC directs to Re-file GST Appeal Within 15 Days [Read Order]

The petitioner, Viha Hotels Private Limited, had assailed the Order-in-Original dated 30.01.2025 on the grounds that it was passed without jurisdiction and contrary to the scope of the show cause notice.

It was argued that the disputed tax and interest were already paid much before the issuance of the show cause notice, and thus, the imposition of penalty under Section 74 of the CGST Act, 2017 was unjustified.

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The petitioner’s counsel, Mr. A.K. Antony submitted detailed tabular data to demonstrate that the liability concerning tax and interest had been fully discharged, and the only surviving issue pertained to the levy of penalty under the extended period.

Additionally, the petitioner claimed entitlement to a refund of the amount paid and contended that the consolidated show cause notice covered multiple financial years, while the impugned order confirmed demand only for FY 2017-18, raising several factual disputes.

After hearing both sides, the Justice C. Saravanan observed that the present writ petition did not raise any jurisdictional error in the adjudication process and that disputed factual issues, including the applicability of penalty and refund entitlement, are best left to be adjudicated by the Appellate Authority under Section 107 of the GST Act.

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The Court clarified that it was not concerned with the correctness of the decision but rather with the legality of the decision-making process, and found no procedural infirmity warranting its interference under Article 226 of the Constitution.

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The petitioner stated throughout the proceedings that an appeal had previously been filed but had since been withdrawn. The Court acknowledged that the appeal could be maintained and allowed the petitioner to resubmit the statutory appeal to the Appellate Authority within 15 days after receiving the order, as long as they complied with all GST law procedural requirements.

Accordingly, the petition was dismissed.

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